Centre proposes hefty hike in charges at small airports

Source: The post is based on the article “Centre proposes hefty hike in charges at small airports” published in Livemint on 13th February 2023.

What is the News?

The Ministry of Civil Aviation has proposed to hike the parking and user development fees at small airports.

What has the Ministry of Civil Aviation proposed for non-major airports?

The Ministry of Civil Aviation has proposed a hike in the parking and user development fees at non-major airports (those with less than 3.5 million passengers per annum).

It has created three non-major airports sub-categories based on passengers—cluster 1 with passengers above 1 million per annum, cluster 2 with passengers between 100,000 and 1 million per annum and cluster 3 with passengers less than 100,000 per annum.

The ministry has suggested a 30% increase in landing and parking charges at the first two clusters while these charges are to remain the same for the third category.

The user development fee or UDF which is charged to bridge the revenue shortfall at airports, has been proposed to be increased by ₹500 per passenger for the first two categories from ₹175 now and no increase has been proposed for the third category.

Note: These rates will also be applicable for airports made operational under the government’s flagship Ude Desh ka Aam Nagrik(UDAN) airports after three years of the scheme—airlines are offered discounts on airport charges for a duration of three years.